currency war

Brazil’s real gained the most in a month after the central bank stepped up efforts to arrest the world’s worst currency decline, announcing a $60 billion intervention program involving currency swaps and loans.

The yen fell to the lowest level in almost three weeks against the dollar on speculation Bank of Japan Governor Haruhiko Kuroda will reiterate the case for monetary easing at an annual Federal Reserve’s conference.

The pound advanced for a third day against the dollar after Bank of England Governor Mervyn King said policy makers aren’t trying to talk it down, damping speculation they are seeking a weaker sterling to spur growth.

The Group of 20 nations should take a stronger stance against currency manipulation at a meeting in Moscow, Russian Finance Minister Anton Siluanov said after conflicting statements on the weakening yen roiled markets.

At some point central banks will probably give up on QE, reasoning that the balance of risks outweighs positive outcomes. Until policy makers come to that conclusion, there's still a bullish case to be made for gold.

The yen surged versus the dollar and euro after a Group of Seven official said a statement on exchange rates was misinterpreted and should be viewed as a sign of concern about excess moves in the Asian currency.

The G-7 and Eurozone finance minters supposedly were on target for a cease fire in the so called currency war, but the rhetoric yesterday seemed to shake up the falling crude market as an ECB bank official took aim and fired.